In a conversation with Cointelegraph, Morgan Creek CEO Mark Yusko proclaimed that the following bull rally could begin as soon as the second quarter of 2023 due to beneficial macroeconomic conditions and anticipations of Bitcoin’s halving.
Fed Decisions Helped Bitcoin Rise
He believes it is unlikely for the US Federal Reserve System (FRS) to lower interest rates in the foreseeable future. Even a decrease or stagnation of this process will be viewed as an optimistic sign for the cryptocurrency market.
On the first of February, the Fed lifted up their rate range to 4.5-4.75% per annum – a “gentle” increase that has not been seen since March 2022 when they started tightening regulations on monetary policy. In response, Bitcoin shot up to $24,000 for the first time in August 2022, according to CoinGecko, while cryptocurrency’s overall market cap breached beyond one trillion dollars.
Yusko believes that the Fed‘s approach is indicative of a stabilizing economy, which has been interpreted by investors as an impending interest rate reduction. Consequently, this interpretation will likely result in higher returns from risky investments, including cryptocurrencies.
Predictions About the Future Are a Bit Mixed
As an additional justification for the bull rally in 2023, Morgan Creek‘s CEO cited Bitcoin halving expectations. It is believed that the digital asset market usually starts to recover nine months before said event. In December 2022, former BitMEX CEO Arthur Hayes pointed out that most untrustworthy firms had sold nearly all of their BTC by then. At around this same time frame, Bobby Lee, co-founder and ex-head of the BTCC exchange, predicted a bull rally no earlier than 2025
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